Paying Off Student Loans- How to Avoid College Debt Completely

Paying off student loans has become a huge problem in the U.S. In fact, this problem is causing financial strain for millions of us. As of the first quarter of 2018, total student loan debt now exceeds $1.5 Trillion, with the average student loan debt per person rising to $31,172 in the last year. That's insane! But What if You could avoid student loans completely?

In this article I'll show you the huge consequences college debt has on your life, and give you tips on how to avoid student loans altogether.

Student Loans Have Serious Consequences

Over the last couple of decades, borrowing money for college has become the default way that students pay for their higher education. But most students don't think about the future consequences of taking out those loans.

But the fact is, starting out life and a career in a financial hole is not good for anyone (except maybe the banks).

What many of these students don't realize until they start paying down their student loans, is that college debt ends up taking a serious toll on their future happiness, well being, and freedom.

Worse yet, a lot of these students never graduate. Many of them get the loans but quit before they get a degree. The consequences are doubly important for these people as they don't typically make as much money as they would if they had the degree.

Paying Off Student Loans Limits Your Freedom

Paying off large amounts of student loan debt gets in the way of living the life you want. It diverts money that could be used for other things.

According to a survey done by the American Institute of CPA's, of people with student loan debt:

Go to a Cheaper College

You don't have to go to Harvard, Yale, or Stanford to get a great college education. Most state schools are relatively cheap and have good programs to help you establish a good career when you graduate. The cost is usually one half to one fourth the cost of a fancy private school.

Plan Ahead for College Expenses

It's surprising to me how few people actually do this. Too many parents don't think about college expenses until their child gets to be 15-16 years old. At that point, it's all but inevitable that student loans will be needed to pay for college.

If your a parent, start saving money for college early and regularly. Saving money consistently will add up to a huge college nest-egg over time.

If you're a student, get a part time job during your high school years. If you know your parents can't pay for school, you can earn enough money to do it yourself.

Work While You're in College

You can also work while you're in college. It may not be your ideal situation, but if you really want a college education, you can do it. Most experts recommend working less than full-time. 20-30 hours a week is recommended.

Go to Community College First

Most young people want to go to a four year college to get the full college experience. However, it's way cheaper to go to community college first, then transfer to a four year college.

The great thing is, more and more states are subsidizing community college tuition. In my home state of Tennessee, recent high school graduates get to attend community college for free as long as you meet a few basic requirements. Check with your state and local community colleges to see what's available.

Colleges Want You to Use Student Loans

You have to be careful when dealing with college admissions staffers. At many colleges they tend to push student loans because they are easy, guaranteed money for the school.

Admissions staff are usually on your side, and will help you get what you need to finance your education. However, you need to realize there is a conflict of interest there. They know that it's easier to qualify you for a loan than it is to get grants and scholarships.

So be careful when they present you with financing options. It's easy to end up paying off student loans for 20 years after graduation if you don't know exactly what you're signing up for.

You have to stop listening to so called financial experts who say that student loans are “good debt“.

We have to realize that any time the government gets involved in helping people finance anything on a large scale, it fundamentally changes the market. The result is that the easy money becomes a bonanza for the colleges, and millions of people paying off student loans for decades.

It's Never Too Soon to Make a Plan

So if paying for college is in the future for you and your child, remember, it's never too soon to make a plan. There are tons of strategies you can use to pay cash for college if you know where to look.